Science Applications International Corporation Common Stock (SAIC)

Days of sales outstanding (DSO)

		Jan 31, 2025	Nov 1, 2024	Aug 2, 2024	May 3, 2024	Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020
Receivables turnover		7.48	7.22	7.71	7.78	8.14	7.48	7.90	—	8.10	7.02	7.17	6.73	7.20	6.54	6.73	6.93	7.24	6.54	6.48	—
DSO	days	48.80	50.56	47.32	46.94	44.82	48.79	46.19	—	45.04	52.00	50.94	54.25	50.68	55.82	54.25	52.69	50.41	55.82	56.30	—

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.48
= 48.80

Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly, which is generally seen as a positive sign of efficiency in managing its accounts receivable.

Based on the data provided for Science Applications International Corporation Common Stock, we can observe fluctuations in the DSO over time. The DSO values ranged from a low of 44.82 days on February 2, 2024, to a high of 56.30 days on July 31, 2020.

It is important to note that a decreasing trend in DSO over time, as seen in some periods for Science Applications International Corporation, can indicate an improvement in the company's accounts receivable management efficiency. For example, the DSO decreased from 56.30 days on July 31, 2020, to 50.41 days on January 29, 2021.

On the other hand, an increasing trend in DSO could potentially raise concerns about the company's ability to collect payments from its customers promptly. For instance, the DSO increased from 50.68 days on January 28, 2022, to 54.25 days on April 29, 2022.

Analyzing the DSO in conjunction with other financial metrics and industry benchmarks can provide a more comprehensive assessment of Science Applications International Corporation's financial performance and operational efficiency in managing its accounts receivable.